Management Analysts and Consultants Career Information
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Significant Points· Thirty-three percent are self-employed,
about twice the average for other management, business, and financial occupations.
· Most positions in private industry require a master’s degree and 5 years of specialized experience; a bachelor’s degree is sufficient for entry-level government jobs.
· Despite projected faster-than-average employment growth, intense competition is expected for jobs.
Nature of the WorkAs business becomes more complex, the Nation’s firms are continually
faced with new challenges. Firms increasingly rely on management analysts to
help them remain competitive amidst these changes. Management analysts, often
referred to as management consultants in private industry, analyze and
propose ways to improve an organization’s structure, efficiency, or profits.
For example, a small but rapidly growing company that needs help improving the
system of control over inventories and expenses may decide to employ a consultant
who is an expert in just-in-time inventory management. In another case, a large
company that has recently acquired a new division may hire management analysts
to help reorganize the corporate structure and eliminate duplicate or nonessential
jobs. In recent years, information technology and electronic commerce have provided
new opportunities for management analysts. Companies hire consultants to develop
strategies for entering and remaining competitive in the new electronic marketplace.
Firms providing management analysis range in size from a single practitioner to large international organizations employing thousands of consultants. Some analysts and consultants specialize in a specific industry while others specialize by type of business function, such as human resources or information systems. In government, management analysts tend to specialize by type of agency. The work of management analysts and consultants varies with each client or employer, and from project to project. Some projects require a team of consultants, each specializing in one area. In other projects, consultants work independently with the organization’s managers. In all cases, analysts and consultants collect, review, and analyze information in order to make recommendations to managers.
Both public and private organizations use consultants for a variety of reasons. Some lack the internal resources needed to handle a project, while others need a consultant’s expertise to determine what resources will be required and what problems may be encountered if they pursue a particular opportunity. To retain a consultant, a company first solicits proposals from a number of consulting firms specializing in the area in which it needs assistance. These proposals include the estimated cost and scope of the project, staffing requirements, references from a number of previous clients, and a completion deadline. The company then selects the proposal that best suits its needs.
After obtaining an assignment or contract, management analysts first define the nature and extent of the problem. During this phase, they analyze relevant data, which may include annual revenues, employment, or expenditures, and interview managers and employees while observing their operations. The analyst or consultant then develops solutions to the problem. In the course of preparing their recommendations, they take into account the nature of the organization, the relationship it has with others in the industry, and its internal organization and culture. Insight into the problem often is gained by building and solving mathematical models.
Once they have decided on a course of action, consultants report their findings and recommendations to the client. These suggestions usually are submitted in writing, but oral presentations regarding findings also are common. For some projects, management analysts are retained to help implement the suggestions they have made.
Management analysts in government agencies use the same skills as their private-sector colleagues to advise managers on many types of issues, most of which are similar to the problems faced by private firms. For example, if an agency is planning to purchase personal computers, it must first determine which type to buy, given its budget and data processing needs. In this case, management analysts would assess the prices and characteristics of various machines and determine which best meets the agency’s needs.
Working ConditionsManagement analysts usually divide their
time between their offices and the client’s site. In either situation, much
of an analyst’s time is spent indoors in clean, well-lit offices.
Because they must spend a significant portion of their time with clients, analysts
Analysts and consultants generally work at least 40 hours a week. Uncompensated overtime is common, especially when project deadlines are approaching. Analysts may experience a great deal of stress as a result of trying to meet a client’s demands, often on a tight schedule.
Self-employed consultants can set their workload and hours and work at home. On the other hand, their livelihood depends on their ability to maintain and expand their client base. Salaried consultants also must impress potential clients to get and keep clients for their company.
Management analysts held about 605,000 jobs in 2009. About 29 percent of these workers, more than 3 times the average for all occupations, were self-employed. Management analysts are found throughout the country, but employ.ment is concentrated in large metropolitan areas. Management analyst jobs are found in a wide range of industries, including management, scientific, and technical consulting firms; computer systems design and related services firms; and Federal, State, and local governments. The majority of those working for the Federal Government are in the U.S. Department of Defense.
Training, Qualifications, Adv.Management analysts held about 501,000 jobs
in 2000. Thirty-three percent of these workers were self-employed, almost twice
the average for other management, business, and financial occupations. Management
analysts are found throughout the country, but employment is concentrated in
large metropolitan areas. Most work in management consulting and computer and
data processing firms, and for Federal, State, and local governments. The majority
of those working for the Federal Government are in the U.S. Department of Defense.
Educational requirements for entry-level jobs in this field vary widely between private industry and government. Most employers in private industry generally seek individuals with a master’s degree in business administration or a related discipline. Some employers also require at least 5 years of experience in the field in which they plan to consult in addition to a master’s degree. Most government agencies hire people with a bachelor’s degree and no pertinent work experience for entry-level management analyst positions.
Many fields of study provide a suitable educational background for this occupation because of the wide range of areas addressed by management analysts. These include most academic programs in business and management, as well as computer and information sciences and engineering. In addition to the appropriate formal education, most entrants to this occupation have years of experience in management, human resources, information technology, or other specialties. Analysts also routinely attend conferences to keep abreast of current developments in their field.
Management analysts often work with minimal supervision, so they need to be self-motivated and disciplined. Analytical skills, the ability to get along with a wide range of people, strong oral and written communication skills, good judgment, time management skills, and creativity are other desirable qualities. The ability to work in teams also is an important attribute as consulting teams become more common.
As consultants gain experience, they often become solely responsible for a specific project, taking on more responsibility and managing their own hours. At the senior level, consultants may supervise lower level workers and become more involved in seeking out new business. Those with exceptional skills may eventually become a partner in the firm. Others with entrepreneurial ambition may open their own firm.
A high percentage of management consultants are self-employed, partly because business startup costs are low. Self-employed consultants also can share office space, administrative help, and other resources with other self-employed consultants or small consulting firms, thus reducing overhead costs. Because many small consulting firms fail each year for lack of managerial expertise and clients, those interested in opening their own firm must have good organizational and marketing skills and several years of consulting experience.
The Institute of Management Consultants USA, Inc. (IMC USA) offers a wide range of professional development programs and resources, such as meetings and workshops, that can be helpful for management consultants. The IMC USA also offers the Certified Management Consultant (CMC) designation to those who pass an examination and meet minimum levels of education and experience. Certification is not mandatory for management consultants, but it may give a jobseeker a competitive advantage.
Job OutlookDespite projected rapid employment growth, keen competition is expected for jobs as management analysts. Because analysts can come from such diverse educational backgrounds, the pool of applicants from which employers can draw is quite large. Furthermore, the independent and challenging nature of the work, combined with high earnings potential, makes this occupation attractive to many. Job opportunities are expected to be best for those with a graduate degree, industry expertise, and a talent for salesmanship and public relations.
Employment of management analysts is expected to
Employment growth of management analysts and consultants has been driven by a number of changes in the business environment that have forced American firms to take a closer look at their operations. These changes include developments in information technology and the growth of electronic commerce. Traditional companies hire analysts to help design intranets or company Web sites, or establish online businesses. New Internet start-up companies hire analysts not only to design Web sites, but also to advise them in more traditional business practices, such as pricing strategies, marketing, and inventory and human resource management. In order to offer clients better quality and a wider variety of services, consulting firms are partnering with traditional computer software and technology firms. Also, many computer firms are developing consulting practices of their own in order to take advantage of this expanding market. Although information technology consulting should remain one of the fastest growing consulting areas, the volatility of the computer and data processing services industry necessitates that the most successful management analysts have knowledge of traditional business practices in addition to computer applications, systems integration, and Web design and management skills.
The growth of international business also has contributed to an increase in demand for management analysts. As U.S. firms expand their business abroad, many will hire management analysts to help them form the right strategy for entering the market; advise on legal matters pertaining to a specific countries; or help with organizational, administrative, and other issues, especially if the U.S. company is involved in a partnership or merger with a local firm. These trends provide management analysts with more opportunities to travel or work abroad, but also require that they have a more comprehensive knowledge of international business and foreign cultures and languages.
Furthermore, as international and domestic markets have become more competitive, firms have needed to use resources more efficiently. Management analysts increasingly are sought to help reduce costs, streamline operations, and develop marketing strategies. As this process continues and businesses downsize, even more opportunities will be created for analysts to perform duties that previously were handled internally. Finally, management analysts also will be in greater demand in the public sector, as Federal, State, and local government agencies seek ways to become more efficient.
Salaries for management analysts vary widely by years of experience and education, geographic location, sector of expertise, and size of employer. Generally, management analysts employed in large firms or in metropolitan areas have the highest salaries. Median annual wage and salary earnings of management analysts in May 2009 were $63,450. The middle 50 percent earned between $48,340 and $86,650. The lowest 10 percent earned less than $37,680, and the highest 10 percent earned more than $120,220. Median annual earnings in the industries employing the largest numbers of management analysts in May 2006 were:
|Management, scientific, and technical consulting services||$72,480|
|Computer systems design and related services||69,800|
|Management of companies and enterprises||59,420|
According to a the Association of Management Consulting Firms, typical earnings in 2009—including bonuses and profit sharing—averaged $52,482 for research associates in member firms; $65,066 for entry-level consultants; $89,116 for management consultants; $123,305 for senior consultants; $191,664 for junior partners; and $317,339 for senior partners. Only the most experienced workers in highly successful management consulting firms earn these top salaries.
Salaried management analysts usually receive common benefits, such as health and life insurance, a retirement plan, vacation, and sick leave, as well as less common benefits, such as profit sharing and bonuses for outstanding work. In addition, all travel expenses usually are reimbursed by the employer. Self-employed consultants have to maintain their own office and provide their own benefits.
Related OccupationsManagement analysts collect, review, and analyze data; make recommendations; and implement their ideas. Others who use similar skills include
Information about career opportunities in management consulting is available from: Information about the Certified Management Consultant designation can be obtained from: Information on obtaining a management analyst position with the Federal Government is available from the Office of Personnel Management (OPM) through USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not tollfree, and charges may result.
Sources of Additional Information
Information about career opportunities in management consulting is available from:
Information about the Certified Management Consultant designation can be obtained from:
Information on obtaining a management analyst position with the Federal Government is available from the Office of Personnel Management (OPM) through USAJOBS, the Federal Government’s official employment information system. This resource for locating and applying for job opportunities can be accessed through the Internet at http://www.usajobs.opm.gov or through an interactive voice response telephone system at (703) 724-1850 or TDD (978) 461-8404. These numbers are not tollfree, and charges may result.